Buying a rental property calls for a different approach to choosing your own home. Be strategic and look for a property that will appeal to a wide range of tenants.
Use your head, not your heart
When you’re choosing your own home, you need to find something that meets personal requirements such as proximity to work, kids' schools or friends and family. As an investor you need to find a property that will suit a broad range of tenants. Of course you have the freedom to buy in any state or territory, though buying in a suburb near home gives you the benefit of local knowledge.
The key is to research locations carefully, looking at important factors like population growth, tenant demand, local price growth and any developments planned for the area. It is also critical to consider the type of property best suited to fulfilling your goals. Think about whether you prefer an existing or new dwelling, and the sort of features that you believe are desirable.